STWA, Inc. Technology Improves the Viscosity of Fuel Oil

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Company's Targets Growing Oil Pipeline and Diesel Engine Markets

SANTA BARBARA, CA--(Marketwire - January 4, 2011) -  STWA, Inc. (OTCBB: ZERO) ("STWA" or the "Company"), an innovative technology company focused on improving the efficiency of large-scale energy transportation networks and reducing fuel consumption and emissions in diesel fleets, today provided an overview of the role that its technology plays in improving the flow of fuel oil and its application in the oil pipeline and diesel engine markets.

STWA's patented and patent-pending energy-efficient technology is designed to reduce the viscosity of petrochemical fluids, thereby improving the efficiency of large-scale energy transportation networks and reducing fuel consumption and emissions in diesel fleets. The Company's two product lines, Applied Oil Technology (AOT™) for supplemental viscosity reduction in oil pipelines and ELEKTRA™ for improved diesel engine efficiency, provide an efficient and cost-effective means of improving the efficacy of crude oil transportation and diesel engine efficiency to help meet global energy demands and emissions quality standards.

AOT™ is a new solution for oil pipeline operators to provide crude oil transport and has been proven in laboratory tests to reduce crude oil's viscosity. This can lead to more efficient oil transportation through pipelines on land and lower extraction costs and transportation for deep sea pipeline operators. Traditionally, this is accomplished by heating the oil to reduce its viscosity, or by using Drag Reducing Agents (DRA) chemicals. In contrast, AOT™ uses an electric field to reduce viscosity, which requires much less energy than traditional heating methods. By reducing the viscosity of crude oil, STWA's technology enables pipelines to operate more effectively, increasing daily flow of oil while reducing power requirements and the need for expensive chemical additives, thereby offsetting potential environmental liabilities.

Mr. Kyte concluded, "Our potential customers and partners continue to express an interest in a product based on our energy efficiency technologies once commercial versions become available. Together, we see these markets as an $11.5 billion-plus immediate addressable opportunity for both our AOT™ and ELEKTRA™ product lines. Broken down, this includes a $6 billion-plus market for AOT™ in crude oil pipeline transmission systems and a $5 billion market for ELEKTRA™ for land-based diesel engines."

"The market for oil transportation is growing rapidly," stated Mr. Cecil Bond Kyte, Chairman and CEO of STWA, Inc. "To meet the increase in global energy demand, additions and expansions to existing energy infrastructure, such as transmission pipelines, will be required as pipeline operators strive to run more efficiently and cost effectively. We have already seen the direct impact that our technology has on the microstructure of crude oil on the nano-scale level as we get ready to test a full-scale AOT™ product prototype this month that has been developed with Colfax Corporation. We believe that AOT™ has the potential to be an invisible powerhouse for the pipeline industry, potentially changing the way crude oil is transported around the globe and how throughput capacity is maximized and measured."

Mr. Kyte continued, "For land and marine-based diesel engines, our ELEKTRA™ technology reduces the viscosity of diesel fuel by aggregating the suspended particulate matter by means of an electro rheological field. Thinner fuels create smaller droplets, which burn more quickly and completely when sprayed into the combustion chamber, enabling the same fuel to release more power and less particulate matter into the air. With diesel fuel consumption continuing to rise and the U.S. moving to implement stronger environmental and fuel economy standards, the need for a clean solution to lower diesel engine emissions is vitally important to the U.S. transportation market. We believe the application of ELEKTRA™ to land-based and marine diesel engine market is substantial, with over 2.1 million tractor-trailers in the U.S. alone."

About STWA, Inc. 

STWA, Inc. (OTCBB: ZERO) is an innovative company creating technology focused on energy efficiency of large-scale energy production and improved fuel economy for diesel fleets. The Company's Patented and Patent Pending technologies, including AOT™ (Applied Oil Technology), under development with Temple University, and ELEKTRA™ (for Improved Diesel Engine Efficiency), provide efficient and cost-effective means of improving the efficacy of crude oil transport and diesel engine efficiency to assist in meeting global increasing energy demands and emission quality standards. Applications include: (AOT™) Crude oil extraction & delivery systems, including oil platforms, oil fields and pipeline transmission systems; (ELEKTRA™) Diesel trucks, trains, marine vessels, military fleets and jet turbines.

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Safe Harbor Statement

This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from any future results described within the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.